How to Discover Your Own Personal Shangri-la…
- Details
- Category: Global Perspectives
- Published on Thursday, 20 October 2011 11:40
- Written by Jeff Thomas
One of the most common questions we receive at International Man is how to choose the best place to relocate. Of course, if you've been following our service, you'll know that there is no such thing (as we've covered in depth in a previous column). Rather, there is only a "best place" for you. Determining what that is, however, can be a challenging thing indeed… at least without the proper tools…
That brings us to today's column, written by Jeff Thomas in collaboration with the IM team. It shares a useful tool that Jeff first developed years ago to help a friend choose a new place to set up shop. We now share that with you…
How to Discover Your Own Personal Shangri-la…
The countries of the developed world are experiencing a new class of refugee - members of the middle- and upper-class. These rungs of the socio-economic ladder are realizing that their countries of residence are in many ways going rapidly downhill without much hope of a short- or medium-term reversal. This is particularly true for national economies, taxes and regulations, and in terms of deteriorating individual liberty.
As a result, many are seeking permanent expatriation, or a "back door" destination, should a sudden move become necessary. In fact, after internationalizing your assets, establishing the back door is the next most important diversification strategy for most.
As an International Man reader, you may be preparing for or considering a second residence outside your home country. Hopefully this article will provide valuable insight toward that end.
The first big hurdle is determining which destination is the right fit for you and your family. This task can be time consuming and frustrating.
Many in the developed West contemplating personal internationalization, particularly Americans, are saying, "There's nowhere to go - the whole world is falling apart." Yet, this is far from the truth. Although much of the developed world is in serious decline, there are exceptions. Further, some of the world's developing countries are on the rise both socially and economically. However, some of the greatest opportunities for those hoping for a better life outside of Europe or America lie in less developed countries.
The less developed countries are generally perceived by dwellers of the developed West as impoverished nations where ignorance and disease are the norm. This is certainly true of some countries such as Somalia, which is the far extreme. However, it is certainly not the case with other locales that technically fit in this category such as Uruguay, which is almost entirely unaffected by the present first world crisis.
Perhaps your idea of a new home is on a beach in the Caribbean where there is minimal violence, and where your wealth is relatively secure. Or, possibly you would prefer a home where there are old-world values and traditions, where you can frequent cafes and surround yourself with the arts. Whatever fits your tastes and needs, such a destination is likely to exist. However, finding the right combination of ingredients is time consuming and requires some research and a bit of travel.
Our first recommendation is that you begin with a list of what is important to you. This can include such items as low taxation* and limited government. However, it may also contain gourmet food and good hair salons. While the latter may seem frivolous, it may not be. Many have expatriated to a new jurisdiction, only to discover that it's the frivolous things that they miss most. Therefore, create a table that covers all these things for all those who will be going with you. Below is an example of how you might go about this.
*Keep in mind that a few countries including the US tax on world income. If, as a US citizen, you earn income abroad, you may qualify for the Foreign Earned Income exclusion on up to the first USD $91,500 of income. However, residency restrictions do apply. So, while a Caribbean island may offer tax free living, that does not generally apply to US persons.
Possible Exit Destinations
Editor's Note: This table is also available in PDF in the Members Area under Internationalization Tools.
The table shown here was used by a Scottish acquaintance of mine when he began his search for a second residence. In the end, his final choice was not even a country on this table. He decided on Chiang Mai, Thailand, also now home to the well-known contrarian investment advisor Marc Faber.
Using a table similar to the one above and ranking your priorities for each contending country is an extremely valuable exercise. While not entirely scientific and obviously subject to personal biases, by conducting extensive due diligence and applying the results to such a document, the person or family looking for a second residence will be less prone to making a commitment that is later regretted. You can ensure you cover all bases before making a decision.
Once the list of contenders has been decided, a bit of travel will be in order. While research can reveal information about any potential destination, getting a feel for the country and how things actually work requires personal experience. By planning a vacation at the place of interest the priorities in the table can be confirmed and new ones added. Some time on the ground, taking notes and refining the table will assist in determining if a potential choice is a good fit for you and your family.
Once the decision on where in the world to settle is reached, other choices will surface over time: do you wish to work, start a business or retire in the new location?; will you pursue citizenship or legal residence? As the answers to these questions surface you will need to set the appropriate process in motion. In many countries, accomplishing some or all of these goals can take a long time, so plan accordingly and expect a few hurdles along the way.
Finally, you will need to rent or purchase property and set up a residence whether you plan to relocate fulltime or establish a back door destination as a nice place to vacation. If you select a destination where the economy is on the upswing, chances are, even if you never need to move there, you can sell the property later at a profit. In the meantime, purchasing foreign real estate gives you diversification beyond one economy and one currency.
[Many people find the process of internationalization confusing, though it doesn’t have to be. Join the International Man network today and gain free access to expertly-crafted reports that will make it easier to diversify – whether you want to store a few gold coins overseas, sign up with an international broker (that will actually accept Americans), or even find a second home to call your own. Click here for the details.]
wayne Rickert
Posted at 2011-10-20 23:54:00
I live in Costa Rica and have been on and off for 10 years. I own property here. I have residency as well. The chart does not show a true picture of Costa Rica. In fact, last year, a magazine did a study and said that Costa Rica is the happiest country in the world. The people here like the Americans, they are a warn people, as for war, they have not been involved in a war since 1948. How does that size up with the other countries that was in the study. Personally, I love costa Rica, it is a beautiful country with most anything you could think of regarding lifestyle. The beach is only a one hour drive from the city, with some of the best fishing in the world. Costa Rica has world class developments and hotels. Using your scale, I would rate Costa Rica at least a "B" if not an "A-"
Michael
Posted at 2011-10-21 00:04:15
The U.S. gets a "D" for "Population accepting of newcomers." Are you serious? The present financial crisis stems from the fact that the U.S. is far too accepting of newcomers -- to the tune of a million or more per year.
These immigrants far too often come from nations with no history of democracy or a Constitutional Republic. When they become citizens, they vote for a statist welfare state and out-of-control spending.
In California, from 1952 through 1988, Republicans won every presidential election except the landslide loss of Barry Goldwater in 1964. Its economy boomed and Silicone Valley blossomed. It truly was the "Golden State."
With the influx of immigrants from Mexico, the State is now a squalid economic basket case with a third-world economy and deficit. For the first time in history, it is experiencing a net loss of people and businesses -- as entrepreneurs flee from this immigrant induced hell hole. The U.S. will be California in ten years.
Die Bremse
Posted at 2011-10-21 17:04:41
"The present financial crisis stems from the fact that the U.S. is far too accepting of newcomers -- to the tune of a million or more per year."
Now that you mention it, Friend, while driving the "8" up near Boulevard one twilight a few years back, I saw from the cab of my semi a group of four dubious-lookin' characters sprint across th' highway in front of me and plunge into the brush on the north side. A common enough sight, sure 'nough, but what struck me as particular' odd was not merely th' fact that they had linked arms, but also that all of 'em was wearin' the finest-cut, Italian-made, pinstriped suits and, oh my, their coattails wuz a-flyin'! The feller leadin' 'em was a ugly ol' cuss with thick glasses and a face like a prune, the next guy had beady eyes and a whitening beard, the third dude was bald and had sorta a dopey 'xpression, and the fourth was just a snooty lil' kid with one o' them funny noses that mustabin tweaked onceuponatime on th' playground down there in Mejico.
Good call, Michael!
Randy
Posted at 2011-12-27 17:43:33
The U.S. gets a "D" for "Population accepting of newcomers." Are you serious? The present financial crisis stems from the fact that the U.S. is far too accepting of newcomers -- to the tune of a million or more per year.
These immigrants far too often come from nations with no history of democracy or a Constitutional Republic. When they become citizens, they vote for a statist welfare state and out-of-control spending.
In California, from 1952 through 1988, Republicans won every presidential election except the landslide loss of Barry Goldwater in 1964. Its economy boomed and Silicone Valley blossomed. It truly was the "Golden State."
With the influx of immigrants from Mexico, the State is now a squalid economic basket case with a third-world economy and deficit. For the first time in history, it is experiencing a net loss of people and businesses -- as entrepreneurs flee from this immigrant induced hell hole. The U.S. will be California in ten years.
I think Michael overstates his case; even if he has one.
Canada accepts more immigrants per capita than the USA, and it's economy is currently thriving. Immigrants have accepted jobs Canadians would not take, and started businesses that have employed many. They have added much in terms of richness to Canadian society.
There is no real backlash against immigration, just reaction to egregous abuse (e.g; immigrant smuggling, criminals getting in and plying their trade). No one in Canada talks about building walls along the US border!
Kerry
Posted at 2012-01-10 12:00:52
Sounds like your not very "accepting of newcomers"! YOU are the "population", not your government. The grade is correct.
The U.S. gets a "D" for "Population accepting of newcomers." Are you serious? The present financial crisis stems from the fact that the U.S. is far too accepting of newcomers -- to the tune of a million or more per year.
These immigrants far too often come from nations with no history of democracy or a Constitutional Republic. When they become citizens, they vote for a statist welfare state and out-of-control spending.
In California, from 1952 through 1988, Republicans won every presidential election except the landslide loss of Barry Goldwater in 1964. Its economy boomed and Silicone Valley blossomed. It truly was the "Golden State."
With the influx of immigrants from Mexico, the State is now a squalid economic basket case with a third-world economy and deficit. For the first time in history, it is experiencing a net loss of people and businesses -- as entrepreneurs flee from this immigrant induced hell hole. The U.S. will be California in ten years.
honestann
Posted at 2011-10-21 05:13:27
You need to add many more countries to your list. I would include at least the following:
Chile, Ecuador, Argentina, Brazil, Peru, Fiji, NZ, Australia, Singapore, Indonesia, Thailand, Canada, Slovakia, Switzerland, Iceland, Greenland, Mongolia, China, Tibet... and I'm sure a dozen more belong on this list. My trips-to and evaluations-of Chile and Fiji were very positive, mostly for different reasons, and I'm sure others would look good too, given ratings in those categories. I'd also add "hot", "cold", "moderate", "low humidity", "minimal temperature extremes", "oceanfront" and "fresh-water lakes, rivers and streams" to your list.
Joe
Posted at 2011-10-21 21:48:33
Here's my list:
-educated professionals in: engineering,biotech, medicine, computers
-no/minimum government intervention on behalf of employees
-no/minimum forced government retirement payments
-real estate property rights are strongly respected
-investment property rights are strongly respected
-no type of capital controls
-fast,cheap and reliable internet access
-fast,cheap and reliable electrical power
-either have VC's or be a country that VC's like
-no/minimum intellectual property laws or enforcement
-both a culture and justice system that strongly respects contracts
-should be extremely difficult to sue someone in a situation that doesn't involve a contract.
-a culture that has much stronger trust and confidence and strength in itself than the government. preferably no government.
-owning and carrying pistols, rifles and shotguns is allowed
-use of an armed private security force is allowed
-strong respect for castle doctrine
-effective criminal justice and security system, preferably as private as possible, and culture strongly respects that.
-presence of gated communities
-innocent until proven guilty
-minimum/no tax,banking or other financial treaties with the US or other countries
-minimum/no extradition treaties with the US or other countries
-maximum banking and other privacy laws strongly enforced
-minimum none criminal enforcement police activity, such as no random/tsa searches and no none victim 'crimes.'
-no worldwide taxes of any sort now or likely to happen in the future.Joe
Posted at 2011-10-21 22:06:34
Some more:
-does not have smog, pollen,possibly altitude, or other conditions that are negative for people with asthma.
-does not frequently have rapid barometric pressure changes, which effect joint and sinus issues.
-has a low profile and does not attract attention of any sort from other governments, major criminal organizations, terrorists or tourists.
-does not have the combination of tropical climate and high population density that causes frequent viral and bacteria illnesses.
-has a significant presence of Universities, libraries, bookstores and literary friendly coffee houses.
-has a population that is as rationalist as possible, with a strong interest in science, the more religious/superstitious the worse.
-the presence of educated psychotherapists.
-has hacker/maker clubs and and electronic, diy and computer stores.
-is not dominated by the narcissistic, shallow and miseducated culture of the US.
-has a culture which does not condone hitting children, hitting adults or circumcision.
-has a culture which is not dominated by feminists, marxists or similar.
-has a culture in which verbal abuse of others is rare, unlike the US.
-has a good balance between city and country living, and at least 2 culturally significant medium sized cities or areas, with reasonable transportation between them.
-ideally uses the Swiss armed citizen model for a military, instead of a standing army.
David
Posted at 2011-12-22 00:16:23
I like your list VERY much. You have mentioned so many things that I value.Have you found any places that have most of what you've mentioned?
Some more:
-does not have smog, pollen,possibly altitude, or other conditions that are negative for people with asthma.
-does not frequently have rapid barometric pressure changes, which effect joint and sinus issues.
-has a low profile and does not attract attention of any sort from other governments, major criminal organizations, terrorists or tourists.
-does not have the combination of tropical climate and high population density that causes frequent viral and bacteria illnesses.
-has a significant presence of Universities, libraries, bookstores and literary friendly coffee houses.
-has a population that is as rationalist as possible, with a strong interest in science, the more religious/superstitious the worse.
-the presence of educated psychotherapists.
-has hacker/maker clubs and and electronic, diy and computer stores.
-is not dominated by the narcissistic, shallow and miseducated culture of the US.
-has a culture which does not condone hitting children, hitting adults or circumcision.
-has a culture which is not dominated by feminists, marxists or similar.
-has a culture in which verbal abuse of others is rare, unlike the US.
-has a good balance between city and country living, and at least 2 culturally significant medium sized cities or areas, with reasonable transportation between them.
-ideally uses the Swiss armed citizen model for a military, instead of a standing army.
Marcus
Posted at 2011-10-22 14:56:22
Would add the availability and quality of international schools for children... Could it be made interactive on the IM site so we as members could add our own countries and experiences?
Sam
Posted at 2011-12-06 08:06:23
@ Joe
Excellent list! Why not make a chart of your own and then post it here? We'd love it.
In any case, I wish Doug's team would amplify their list with more categories, and especially with more countries. Would be so helpful. Put in Colombia and Ecuador, as well as Brazil. Also, take into account readers' comments--maybe do a survey of expat residents.
hp
Posted at 2011-12-26 21:23:13
That you included concern for animals (humanity) as an indicator is very impressive indeed.
I'm not impressed easily. After all, I am an American and I've almost forgotten what it means to be impressed..
Thanks!
KIA
Posted at 2011-12-27 02:27:06
There's only a handful of small nations which are free from the English nanny-state mentality and an even smaller group which could secede on a majority vote (like Nevis or New Caledonia who is supposed to have a vote in 2014, look it up).
You're going to need to look at very, very small countries ("micronations" - the wiki article makes for fascinating reading) or countries that have the capability to declare their own independence in order to satisfy Joe's list (which is quite excellent if highly idealized). Most of the former colonies (Cook Islands, Niue et al) are irrevocably poisoned with anti-gun, anti-property, anti-liberty mindsets.
Assuming such a nation exists or could be created, you must then worry about much, much larger nations getting tired of your success and excercising the "right of conquest" against you (e.g Republic of Minerva put to the sword by Tonga 1972), so it is quite a problem to solve. I've been working on it for ten years or so without success so I will be curious to see what you put together.
Bernard Jarvis
Posted at 2011-10-20 22:53:33
How did they arrive at "A" for "Traditional work ethic; minimal entitlement consciousness" in Uruguay? That's 100% counter to the truth. They should be graded an F in that category, or a "D" if you are feeling generous.
"Largely agrarian society; self-sufficient on food" should be an A for Uruguay. And for "Population largely content with their government, their society and their lot in life" they should have a B or a C. As much as they love the status quo, they sure do love to complain about how "things aren't as good as how they used to be," and even go as far as saying "there was much less crime and better job prospects under the dictatorship."
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